In Realtor.com’s recent article, “Home Buyers’ Top Mortgage Fears: Which One Scares You?” they mention that “46% of potential home buyers fear they won’t qualify for a mortgage to the point that they don’t even try.”
Myth #1: “I Need a 20% Down Payment”
Buyers overestimate the down payment funds needed to qualify for a home loan. According to the First Quarter 2017 Homeownership Program Index (HPI) from Down Payment Resource, saving for a down payment was the barrier that kept 70% of renters from buying.
Rob Chrane, CEO of Down Payment Resource had this to say,
“There are many mortgage-ready renters today, but they don’t know it. Often, homebuyers remain sidelined for years due to the down payment.”
Many believe that they need at least 20% down to buy their dream home, but programs are available that allow buyers put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.
Myth #2: “I Need a 780 FICO® Score or Higher to Buy”
The survey revealed that 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO® score is necessary to qualify.
Many Americans believe a ‘good’ credit score is 780 or higher.
To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.
As you can see in the chart above, 53.2% of approved mortgages had a credit score of 600-749.
Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach. Process of Buying a House
Common Real Estate Myths and Misconceptions Debunked
If you’re new to world of Real Estate you’ll undoubtably have been exposed to some of the common rumors associated with the industry. Most likely you’ve encountered some common myths by word of mouth or even one of the many T.V. Shows that you’ve probably seen. However, if you’re looking to buy or sell a house a little clarity might just help you along your way. Here are some real estate misconceptions and myths that you’ve probably heard from one source or another. Process of Buying a House
1. You do not need a real estate agent now that you can access the information online Process of Buying a House
Buying a home can be a very daunting task, especially for the first time home buyer. So it’s quite important to have an excellent real estate agent to represent your interests. Agents understand the process of buying and selling homes, and will advise you properly on all your market decisions. There is a common misconception in real estate today that buying a home using the online information you collect will result in getting a better deal. This is because there will be no commissions or “cuts” to the real estate agent right? However, nothing can be further from the truth. What you should be aware of is a significant amount of the online information you encounter may not be as valid, honest, or even useful as you may think. Just imagine the kind of service you can get from a real estate agent with 20 years worth of experience. This agent will bring a complete negotiating system to the table to ensure you get the best deal. Process of Buying a House
2. All real estate agents are the same Process of Buying a House